Enbridge Energy Partners LP has announced that the board of directors of the delegate of the Partnership's general partner has declared a quarterly cash distribution of US$0.583 per unit, or US$2.332 per unit on an annualised basis, on all of the Partnership's outstanding units for the quarter ended 30 June 2016. The approved distribution remains unchanged from the previous quarter. The distribution is payable on 12 August 2016, to unitholders of record at the close of business on 5 August 2016.
The highlights included:
- Reported 2Q16 net income and cash provided by operating activities of US$83.7 million and US$280.2 million, respectively.
- Reported 2Q16 adjusted EBITDA and distributable cash flow of US$489.3 million and US$262.7 million, respectively.
- Oil sands production that was curtailed for northeastern Alberta wildfires has substantially come back on line with the Partnership's Lakehead system utilisation returning to anticipated levels.
- Completed the final phase of the Eastern Access Programme by placing the Line 6B expansion into service.
"Our 2Q16 financial results are tracking well with our expectations and reflect the reliability of our low-risk business model," said Mark Maki, President for the Partnership. "Extreme wildfires impacted the producing regions of northern Alberta in May and June, and we are proud of how our team responded to ensure the safety of our people and the integrity of our liquids pipeline systems. We worked diligently with our customers to bring affected volumes back online as quickly and safely as possible. Demand for our liquids pipeline systems remains strong, and we expect Lakehead system deliveries during the third quarter to return to levels anticipated at the outset of the year."
The Partnership and other subsidiaries of Enbridge Inc. agreed to a consent decree with the US Department of Justice and the US Environmental Protection Agency on civil penalties and other actions relating to the 2010 incidents on our Line 6B pipeline in Marshall, Mich., and Line 6A pipeline in Romeoville, Ill.
"From the beginning, we took responsibility for the Line 6B release, and we have fulfilled our commitments to the people of Michigan to conduct a thorough clean up and restoration effort and to cover all costs," Maki said. "We are a company that is focused first and foremost on the safety and operational reliability of our pipeline systems."
During the second quarter, the Partnership completed the final phase of the Eastern Access Expansion, adding an incremental 70 000 bpd of capacity to the Lakehead system between Griffith and Stockbridge.
"The Partnership continues to successfully execute its organic growth program, bringing needed additional capacity and connectivity to our liquids pipeline systems. Expansions to our system further enhance our unmatched market access, which is critical to our customers. Increasing our customers' access to premium markets gives us confidence in the continued high system utilisation of our liquids pipelines business," Maki continued. "Additionally, we are progressing on our strategic evaluation of the Partnership's investments in the natural gas business through Midcoast Operating LP and Midcoast Energy Partners LP (MEP), and we expect to complete the evaluation by the end of this year."
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29072016/enbridge-releases-2q16-results-383/